Poland needs to invest in infrastructure and labour: OECD

The Polish economy has grown significantly over the last two decades, but needs to invest more in infrastructure and worker skills if it is to expand further, the OECD says in a report.

The Polish capital, Warsaw. Photo: Flickr.com/Giuseppe Milo

A survey published on Tuesday by the Organisation for Economic Co-operation and Development (OECD) said that Polish economic growth “remains solid” and unemployment is on the decline.

But it warned that “further investments in infrastructure and skills will be essential to sustain a continuing improvement” in living standards, environmental quality and well-being in the country.

“Poland has made remarkable progress over the 20 years since it joined the OECD, delivering levels of well-being and quality of life that have never before been experienced,” OECD Chief Economist Catherine L. Mann said during the presentation of the report on Tuesday.

“During the time when most countries have been struggling to bounce back from the global economic crisis, the Polish economy has reported strong growth, driving down unemployment. The challenge going forward is to find the policy mix to promote the transition to an economy based on higher technologies and skills, making growth stronger, greener and more inclusive.”

The report also listed a number of possible shocks for the Polish economy. These include spillovers from monetary normalisation in the US, electricity capacity shortages, and the increasing number of migrants into Poland.

On the latter point, the OECD said that more migrants “would raise medium-term labour supply”. It added that in the long term it would “have positive effects on the fiscal situation, innovation, productivity and income”. (rg/pk)